Florida residents will fund nuclear power’s future, or lack of future!

the users pay upfront, make the investment and yet somehow the shareholders end up getting the profits

FPL rates will rise to pay for nuclear projects, State utility regulators rejected arguments from consumer advocates and agreed to allow utility companies to charge customers so they can invest in plans for nuclear power. MIAMI HERALD, BY MARY ELLEN KLAS, TALLAHASSEE , 24 oct 11, — Florida Power & Light got the go-ahead Monday to tack a new charge to the average household electric bill that will go towards investing in nuclear energy — even if the utility never ends up building any new nuclear power plants.

The charge, which will amount to $2.20 every month for a household using the average 1,000 kilowatt hours of electricity a month, was approved unanimously by the Public Service Commission, which regulates state utilities.

Under a state law approved by the Legislature in 2006, the company can collect the money for new nuclear plants without having to commit to building the plants. The commission approved the rate increase, arguing it was required to do so based on the statute……

opponents, including the Office of Public Counsel, which represents consumers in the rate case, argued that the money is a bad deal for consumers because there is no guarantee that FPL will build the new plants despite spending money on planning, licensing and design. Green energy advocates also warn that the process locks customers into paying for expensive nuclear plants for decades when other, more efficient energy options may become available.

“It’s a sad day for Florida ratepayers’ wallets,’’ said Stephen A. Smith, director of the Southern Alliance for Clean Energy, a non-profit advocacy group. He said the law that allows companies to recover money for nuclear expenses before they incur the costs is “like free money for the utilities.’’…..

The commission also unanimously approved Progress Energy’s request to charge average customers $2.93 per month to build future nuclear power plants, despite troubles with its existing Crystal River plant, which is in need of an estimated $2.5 billion in repairs……

Meanwhile, the cities of Pinecrest and South Miami are leading an effort to repeal the legislation and have passed resolutions opposing the nuclear cost recovery policy.

“This is in fact the most amazing corporate welfare scheme I have ever seen in my lifetime. It’s really anti-capitalism,’’ said South Miami Mayor Phillip Stoddard. Because the cost-recovery funding makes it possible for utility companies to obtain Wall Street funding for nuclear technology in the wake of the Japanese disaster, he said, the policy has helped utility shareholders at the cost of consumers.

“Here, the users pay upfront, make the investment and yet somehow the shareholders end up getting the profits,” Stoddard said. “It’s really remarkable.”

http://www.miamiherald.com/2011/10/24/2470358/fpl-rates-will-rise-to-pay-for.html

October 25, 2011 - Posted by Christina Macpherson | business and costs, politics, USA

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